Sales of protein powder and other dietary supplements have increased significantly in recent years. A lot of businesses purchase wholesale supplements and sell them at retail prices. On average, the profit margin of these products is around 10 percent, but it can go as high as 50 percent for certain products and brands. In addition to supplements, business owners in the food and beverage industry have also benefited from the trend of healthy goods. That’s why there are multiple protein powder drinks and snacks available on the market today. Even though sales of protein-related supplements are primarily done by end customers, a lot of companies purchase wholesale protein powder and use it as an ingredient. In this article, we’ll share details about B2B sales of protein powder and the future of the industry.
Who Buys Wholesale Protein Powder
Even though people might combine and purchase large quantities of protein powder at lower prices, businesses are the ones that actually partner with suppliers and buy wholesale protein powder at a wholesale price. Let’s examine some of the businesses that work with distributors of wholesale protein products.
- Retailers. Grocery stores, health stores, and other retailers purchase large quantities of protein powder. Most sales of protein bars, powder, and other related products are done in brick-and-mortar stores. Online sales are on the rise and are expected to outperform offline sales. That’s why online retailers also purchase wholesale protein powder. A lot of people prefer to buy protein supplements from fitness stores as they can get better customer service and consultation there.
- Supplements manufacturers. Producers of multivitamins and other supplements also purchase wholesale protein powder as it is one of the main ingredients in various products.
- Smoothie bars and cafes. There are hundreds of smoothie protein powder recipes. Tasty beverages with protein powder are the most popular way to consume amino acid supplements. In fact, protein lattes and other coffee beverages with protein are becoming increasingly popular. They are sometimes referred to as proffee.
- Food service establishments. Restaurants also benefit from the growth of the protein powder industry. They include the product as an ingredient in breakfast food, desserts, or other recipes. Businesses like ghost kitchens or other companies that offer meal prep services have a lot of health-conscious customers. That’s why they often work with wholesale protein powder distributors.
- Gyms and wellness centers. These businesses might offer protein shakes or other products that can be consumed during or immediately after a workout. The majority of people who visit gyms are aware of the benefits of protein powder. That’s why they are likely to purchase such products. Furthermore, gyms can use protein powder products and other supplements used by bodybuilders as an upselling option for their customers.
Key takeaway: Protein powder is used as an ingredient in various products like bars and ready-to-drink beverages. Manufacturers of livestock feed also purchase wholesale protein powder and use it for animal feed production. The protein powder market is expected to double in the next decade.
The Retail and Wholesale Protein Powder Market
Even though the protein powder industry is considered a fairly small and niche market, it's rapidly growing in the US and other countries. The protein powder market is part of the dietary supplement market. They have become among the high-demand products nowadays and this trend is not likely to change soon.
Current State of the Market
The global protein powder market’s size was estimated at 27 billion dollars in 2022 according to Statista. That includes not only protein powder supplements sold by retailers and online but also protein powder used for animal feed. Protein powder is also used by businesses in the pharmaceutical and cosmetics industries. Estimates show that the market will grow by an average of 7 percent every year in the next 10 years. That means it is expected to double by 2032. Animal-based protein powders have a higher market share compared to plant-based options. The main reason for that is that animal protein powders often include all essential amino acids.
In addition to wholesale protein powder, the market also includes a variety of other products. Manufacturers and suppliers aim to answer the demand for convenient options that are rich in protein. That’s why ready-to-drink beverages, bars, and protein-rich energy drinks have increased in popularity. Retailers and other businesses find suppliers that can offer a wide variety of such products at wholesale prices.
Besides the expected growth, the market is likely to change in the near future. New mixes of protein, vitamins, and minerals are likely to increase in popularity. Furthermore, an increased number of consumers are turning to plant-based proteins. That’s why they are expected to have a bigger market share compared to animal-based protein powders. Pea, soy, and other plant protein powders are manufactured in a more sustainable way which also helps with their marketing.
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Frequently Asked Questions about Wholesale Protein Powder
Businesses are working on new protein-rich products. That’s why the retail and wholesale protein powder market is expected to grow in the near future. Whether you’re looking for suppliers or you’re a distributor that plans to offer protein products in their catalog, BlueCart can aid your business. We help wholesale businesses improve their processes and maximize profits with the help of automation. Our team has gathered and answered some of the popular questions about protein powders and supplements.
What Are the Most Popular Types of Protein Powder?
Whey protein is undoubtedly the most common one on the market. It’s fast-digesting and is perfect for consumption after a workout. The most popular whey protein varieties are concentrate and isolate. There are other protein types that are also popular. Here are some of them.
- Mixed protein. It combines both animal-based and plant-based protein sources. It gives the body all the essential amino acids.
- Casein protein. It’s made of dairy products and is similar to whey protein. Its slow absorption makes it ideal for a night protein.
- Pea protein and other plant-based options. Pea, rice, and soy are the most common options when it comes to plant-based protein powder. Their main benefit is that they are easier to digest, but not all of them contain all essential amino acids.
What Are Other Popular Dietary Supplements?
Multivitamins are the most common dietary supplement. Sales of these products have increased substantially in the last decades. The reasons for that are the light regulation laws and the fact that an increased number of people have vitamin and mineral deficiencies. In addition to vitamins, minerals like iron, zinc, and magnesium are also popular dietary supplements. Many in the US also buy fiber and probiotic supplements. If you’re looking for an organic alternative to them, read our post about the health benefits of yogurt.
How to Start a Protein Powder Business?
As the retail and wholesale protein powder market grows, there are many opportunities to start a company in this sector. One of the easiest businesses to start is an eCommerce store that sells protein powder and other products purchased by the same audience. An easy way to do this is to benefit from the dropshipping model. Through it, you can outsource the shipping and handling processes and focus on marketing. Another business idea related to protein powder is to start your own brand. You can partner with manufacturers of protein powder that offer white-label services. You can also expand the brand to sell products such as protein pasta, bars, or ready-to-drink shakes.